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Companies fall short in correcting errors: Roseman

A large company makes a mistake that inconveniences many customers. How can it recover with its reputation intact?

Here are three stories of corporate policies gone wrong and attempts to make customers happy.

Lenovo

Last month, the Chinese computer manufacturer advertised laptops at its Canadian website at up to 79 per cent off. Instead of $1,389, the Y410P laptop was selling at only $279.

Lenovo cancelled the orders, blaming a pricing error. Many would-be buyers complained about bait and switch. Others said their credit card information was collected and stored under false pretenses.

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A few people enclosed a link to a YouTube video about a similar error in China, involving tablets sold at low prices. Lenovo honoured the initial orders, which cost it $16 million in revenue.

About 6,000 people signed a petition at Change.org, asking Lenovo Canada to honour the pricing on its website.

It took Lenovo a few days to explain the error (allowing an e-coupon to be combined with an instant savings discount price). Customers were offered a $100 credit on a new laptop, valid for purchases by Aug. 3.

My view: Lenovo could have done better in correcting the mistake quickly, offering an explanation and apologizing profusely. A time-dated coupon won’t be enough to lure disenchanted customers back to its website.

Shaw Direct

The satellite TV provider sent out emails last month with the salutation: “Dear valued customer.” Then, it included email addresses of all the recipients.

Most companies use Bcc (for “blind carbon copy”) on emails to hide customers’ personal information. Some clients complained their privacy had been compromised.

Chethan Lakshman, Shaw’s vice-president of external communications, said a representative accidentally sent four emails to about 1,000 customers, with the addresses in the “To” field and not the “Bcc” field.

“A process was put in place to recall as many of the emails as possible and mitigate any issues. Customers were also contacted by email and phone, explaining the issue and our actions, and to apologize for the error,” he said.

A reader who contacted me felt an apology wasn’t enough. He kept calling the company until he won a concession.

“They are going to give me the next six months of my service at no charge,” he said, adding that he was happy with that arrangement.

My view: Shaw Direct should waive six months of fees for 1,000 customers, not just the vocal few. And it should set up an automated system to ensure that email addresses are protected from an employee’s mistake.

Air Canada

Some people who booked flights found out after the purchase they were flying on Rouge, a new brand owned by Air Canada that’s designed to make the airline more competitive for popular holiday destinations.

Bruce McLean, for example, was flying from Toronto to Phoenix. Two months before takeoff, he got an email from Air Canada saying his flight had been switched to Rouge.

“Can Air Canada arbitrarily switch me without giving me any recourse?” he asked, expressing reluctance to use a low-cost alternative to the main carrier.

Air Canada emailed McLean in late May, asking him to call about the switch. In less than a minute (after waiting on hold for almost 30 minutes), he received a full refund, he said.

“We are taking extra steps to ensure all customers are notified and they are aware of their options when mainline routes transfer to Rouge,” said spokesman Peter Fitzpatrick.

My view: Air Canada is doing the right thing, even if pushed by protests into greater disclosure. Companies hate to see their brands denigrated and laughed about.

I’m still waiting to hear if Air Canada will compensate a six-foot passenger who took a Rouge flight in April and was diagnosed with torn chest cartilage in a U.S. hospital after struggling to get out of his seat. He never booked on charter airlines, he said, and didn’t know he’d be getting similar service.

“I can’t comment on this complaint, as it is with our claims people,” Fitzpatrick said.

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